The Dow Jones New York Stock Exchange closed higher on Tuesday (Jan. 31) after the US reported a slowdown in labor costs in the fourth quarter of 2022, which led the market to expect the Federal Reserve (Fed) to accelerate its interest rate hike. While investors keep an eye on the outcome of the Fed’s monetary policy meeting today, US time. and operators of major tech companies this week. This includes Alphabets and Apples.
The Dow Jones Industrial Average closed at 34,086.04 points, a gain of 368.95 points, or +1.09%, the S&P 500 Index closed at 4,076.60, a gain of 58.83 points, or +1.46%, and the Nasdaq Index closed at 11,584.55, a gain of 190.74 points, or +1.67%.
All three major indices rose more than 1% in response to a US Labor Department report that said Employment Cost Index Inflation rose 1% in the fourth quarter of 2022, the slowest expansion in a year, and lower than the 1.2% increase in the third quarter as wages rose. Growing at a slower rate
Peter Touz, an analyst at Chase Investment Counsel, said the slowdown in labor costs reflected that. The Fed’s recent inflation control mission has worked. And is likely to make the Fed accelerating in raising interest rates.
Throughout the month of Jan. The Dow rose 2.8%, while the Nasdaq rose 10.7%, its strongest monthly gain since 2001, and the S&P 500 rose 6.2%, its strongest monthly gain since 2019.
Ryan Derick, analyst at Carson Group, said: “The stock market was strong in January, the first month of the year. This is a good sign for the market. And it indicates that the market will continue to rebound in the coming months. Statistics show that five times in the past the S&P 500 rose more than 5% in January after the market tumbled the previous year. The index soared an average of 30% that year.”
All 11 stocks comprised of the S&P 500 ended in positive territory, led by a 2.22 percent gain in materials, with Freeport-McMoran gaining 1.43 percent and Vulcan Materials. US Steel Corp shares rose 2.83%, US Steel Corp shares were up 0.49%.
Exxon Mobil shares soared 2.16% after the company reported net profit of $56 billion in fiscal 2022. which hits a record high
McDonald’s stock The market closed down 1.29% after the share price rose during the day. It welcomed the release of earnings per share for the fourth quarter of 2022 of $2.59, above expectations of $2.45.
General Motors (GM) shares soared 8.35% after the company reported earnings per share for the fourth quarter of 2022 of $2.12, above analysts’ expectations of $1.69.
United Parcel Service (UPS), the world’s largest parcel delivery company, soared 4.71 percent on earnings per share in the fourth quarter of 2022 of $3.62, beating analysts’ expectations of $3.59.
Investors will keep an eye on the outcome of the Fed’s monetary policy meeting, which will be announced on Wednesday, February 1, US time. or in the early morning of Thursday, February 2, according to Thai time While the market expects The Fed will raise interest rates by 0.25% at this meeting.
Investors are also keeping an eye on earnings reports from major tech companies this week. This includes Alphabet, Amazon and Apple, as well as looking forward to the US January nonfarm payrolls figures released on Friday.
